After driving by this FSBO (classic red and white sign in the yard) 15-20 times on my way to the jobsite, we finally looked into it and saw it was a double.

And if they wanted out of their lease, I would attempt to find a replacement asap, while letting them know the  unit is still habitable and they are responsible for rent until somebody new signs a lease. 

The contractor and your inspector are going to be able to help you determine renovation costs, so get quotes and add on 20%.Talk with the RE agent about resale and rental values on the property in current condition and ARV (after renovation value).But the best thing about this scenario is access to the owner!!

The list isn't important anyway.B - The process you are following, doing what I am assuming is a Sandwich Lease Option is as follows:   1 - Gain control of the property by signing a lease agreement, and an Option agreement (they are 2 separate agreements, and should NEVER be a single agreement...and never include references from one to the other) in the name of an LLC (you).   2 - Sub lease to the tenant (buyer).   3 - Sell an Option on your LLC to the Tenant/Buyer.   4 - When the Tenant/Buyer exercises their Option, they are buying the LLC.   5 - The Tenant/Buyer now owns the LLC, and all its assets...which include the Option to buy the property.   6 - In the end, the Seller never changes, and the buyer never changes. 

As soon as I've got a project done, tenants in place, and leases signed I'll just provide them to my lender and get financing immediately.

We posted bandit signs, put business cards around places, and marketed on FB.

A seller we had sent a offer to has sent us back a filled out but not signed contract for $6,500 less than what we offered for the property.

You must determine if it is tenant space or common space.Other that large multi units it is best to always give 24 hr notice unless the relationship you have with your tenants does not require notice.

Also with a property manager already in place for the whole complex, I am assuming I would only be cashing in checks and signing repair bills. 

Read the agreement you signed with the PM company.